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3. Ginny's utility function is given as U(21, 12) = VI1x2 where I is the number of cookies and r, is the number of glasses
3. Ginny's utility function is given as U(21, 12) = VI1x2 where I is the number of cookies and r, is the number of glasses of milk. (a) Draw Ginny's indifference curves at the levels U = 1, U = 2, U = 4. Indicate at least 2 points (bundles) in each indifference curve. (b) Is Ginny's preference convex? monotonic? (c) Find the marginal utility of cookies. Find the marginal utility of glasses of milk. Find the marginal rate of substitution. (d) Suppose that Ginny's utility function can be represented as U1 ($1, 12) = 1 12. Draw Ginny's indifference curves at the levels U, = 1, V1 =1, U, = 16. Indicate at least 2 points (bundles) in each indifference curve. Are these indifference curves identical to those in part (a)? (e) Find the marginal utility of cookies. Find the marginal utility of glasses of milk. Find the marginal rate of substitution. Are they identical to those in part (c)? Do UI(21, 12) and UI(21, 12) represent the same preference? Why? (f) Suppose that Ginny's utility function can be represented as U2(21, 12) = 2142. Draw Ginny's indifference curves at the levels U2 = 2, U2 = 8, U2 = 32. Indicate at least 2 points (bundles) in each indifference curve. Are these indifference curves identical to those in part (a)? (g) Find the marginal utility of cookies. Find the marginal utility of glasses of milk. Find the marginal rate of substitution. Are they identical to those in part (c)? Do U(21,12) and U2(21, 12) represent the same preference? Why
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